Russian Energy Minister Alexander Novak said today that oil markets will begin to balance once the production agreement takes effect in May, while it is unlikely that there will be a significant increase in prices in the near future due to high levels of global storage.
The Organization of the Petroleum Exporting Countries (OPEC) and other major oil producers, including Russia, agreed to cut production by about 10 million barrels per day, or 10% of global oil production, from May to June.
Additional discounts are expected from countries such as the United States, Canada, Norway and Brazil. It is worth noting that the oil markets have declined for eight of the past nine weeks.
